May Wholesale Prices Unchanged in U.S.

Wholesale prices remained unchanged in May according to the Labor Department. It had risen by 0.5% in April and despite being unchanged in May from the previous month, the reading was 2.4% higher than a year ago.

Energy and food prices were particularly weak in the month of May, with energy prices 3% lower and food prices 0.2% lower. Food and energy costs tend to be more volatile than other prices because they are tied to globally traded commodities. Excluding food and energy prices, the so-called “core inflation” was 2.1% higher than a year ago.

May’s reading was roughly in-line with expectations and is unlikely to have a material effect on Federal Reserve policy.

Longer-term the PPI has been rising at increasing rates until recent months when the increase has appeared to level off.